Income tax slab rates in India for FY 2020-21 i.e. AY 2021-22 for financial year ending 31.03.2021 | File income tax return online with experts

written by Income tax Expert | June 27, 2021

Income tax slab rates are the rates defined under Income tax act and are mentioned in the Finance Act every year and based on which tax is paid by all the assessee’s every year.

The Income tax slab rates for different types of Assessee’s for FY 2020-21 i.e. year ending 31.03.2021 is as under:

Income Tax Slab Rate for resident Individual (i.e. men/women) below 60 Years of Age:

Income Tax Slab Income Tax Slab Rate
Income upto ₹ 2,50,000 Nil
Income between ₹ 2,50,001 – ₹ 500,000 5% of Income exceeding ₹ 2,50,000
Income between ₹ 500,001 – ₹ 10,00,000 20% of Income exceeding ₹ 5,00,000
Income above ₹ 10,00,000 30% of Income exceeding ₹ 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.

                    15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.

                    25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.

                    37% of tax where total income exceeds Rs. 5 crore.

Health & Education cess: 4% of tax plus surcharge

Rebate u/s 87A is available for Rs. 12,500 if total income below Rs. 5,00,000/-.

This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A.

From the above mentioned financial year new optional slab rates have been announced by Income tax department under section 115BAC of the Income tax act wherein the individual will have to let go various exemptions and benefits. To read more about section 115BAC CLICK ME.

Income tax slab Income tax slab rate
Upto 2.5 lakh Nil
From 2,50,001 to 5,00,000 5% of Income exceeding ₹ 2,50,000
From Rs 5,00,001 to Rs 7,50,000 10% of Income exceeding ₹ 5,00,000
From Rs 7,50,001 to Rs 10,00,000 15% of Income exceeding ₹ 7,50,000
From Rs 10,00,001 to Rs 12,50,000 20% of Income exceeding ₹ 10,00,000
From Rs 12,50,001 to Rs 15,00,000 25% of Income exceeding ₹ 12,50,000
Above Rs 15,00,000 30% of Income exceeding ₹ 15,00,000

All the other conditions of surcharge and special tax rates remains the same.

 

Income Tax Slab Rate for Resident Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab Income Tax Slab Rate
Income upto ₹ 3,00,000 Nil
Income between ₹ 3,00,001 – ₹ 500,000 5% of Income exceeding ₹ 3,00,000
Income between ₹ 500,001 – ₹ 10,00,000 20% of Income exceeding ₹ 5,00,000
Income above ₹ 10,00,000 30% of Income exceeding ₹ 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.

                    15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.

                    25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.

                    37% of tax where total income exceeds Rs. 5 crore.

Health & Education cess: 4% of tax plus surcharge

Rebate u/s 87A is available for Rs. 12,500 if total income below Rs. 5,00,000/-.

This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A

 

Income Tax Slab Rate for Resident Super Senior Citizens (Age 80 years or more)

Income Tax Slab Income Tax Slab Rate
Income upto ₹ 5,00,000 Nil
Income between ₹ 500,001 – ₹ 10,00,000 20% of Income exceeding ₹ 5,00,000
Income above ₹ 10,00,000 30% of Income exceeding ₹ 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.

15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.

25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.

37% of tax where total income exceeds Rs. 5 crore.

Health & Education cess: 4% of tax plus surcharge

This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A 

 

Income Tax Slab Rate Hindu Undivided Families (HUF), Association of person, Body of individuals, Artificial Judicial Person, Non Resident Individual of any age:

 

Income Tax Slab Income Tax Slab Rate
Income upto ₹ 2,50,000 Nil
Income between ₹ 2,50,001 – ₹ 500,000 5% of Income exceeding ₹ 2,50,000
Income between ₹ 500,001 – ₹ 10,00,000 20% of Income exceeding ₹ 5,00,000
Income above ₹ 10,00,000 30% of Income exceeding ₹ 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.

15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.

25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.

37% of tax where total income exceeds Rs. 5 crore.

Health & Education cess: 4% of tax plus surcharge

All these persons are not eligible for Rebate u/s 87A as it’s available to only resident individuals.

This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A

 

Income tax rate for Partnership Firms/ LLP:

Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge

 

Income tax rate for Local Authorities:

Local Authorities are to be taxed at the rate of 30%.

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge.

 

Income tax rate for Domestic Companies:

Domestic Companies are to be taxed at the rate of 30%. However, tax rate will be 25% if turnover or gross receipt of the company For F.Y. 2017-18 does not exceed Rs. 400 crores.

Plus:

Surcharge: 7% of tax where total income exceeds Rs. 1 Crore

12% of tax where total income exceeds Rs. 10 Crore

Health & Education cess: 4% of tax plus surcharge

Further for domestic companies there is one more option to opt for 22% tax rate under Section 115BAA wherein they need to let go various benefits and pay a compulsory surcharge of 10% and 4% cess which brings their effective tax rate to 25.168%.

There is one more tax rate for newly formed companies engaged in manufacturing under section 115BAB.

 

Income Tax Slab Rate of Co-operative Societies

Income Tax Slab Income Tax Slab Rate
Up to Rs.10,000 10% of Income
Rs.10,000 to Rs 20,000 20% of Income exceeding Rs. 10,000
Over Rs. 20,000 30% of Income exceeding Rs. 20,000

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge

However, from this financial year co-operative societies will have an option to pay flat tax rate of 22% under section 115BAD which could be a great relief from their current highest tax rate of 30%.

 

Income tax slab rates for Companies other than Domestic Companies i.e. Foreign companies:

Foreign Companies are to be taxed at the rate of 40%.

Plus:

Surcharge: 2% of tax where total income exceeds Rs. 1 Crore

5% of tax where total income exceeds Rs. 10 Crore

Health & Education cess: 4% of tax plus surcharge.

 

The above mentioned income tax rates will be used when you file your income tax return for AY 2021-22 or FY 2020-21.

 

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